Colorado Real Estate Journal -
IBC Holdings LLC has acquired a huge piece of the Avaya campus in Westminster to reposition it for warehouse, light-industrial/flex and office uses. The deal included Avaya’s 1.2 million-square-foot former research-and-development facility on 105 acres at West 120th Avenue and Interstate 25. The price wasn’t released, but Avaya confirmed the recorded price of $5.75 million. IBC Holdings expects to spend just under $50 million reconfiguring the building at 1200 W. 120th Ave., which will become Park 12 Hundred. The acquisition was a joint venture with long Wharf Real Estate Partners LLC, a Boston-based private equity real estate manager. Avaya, which at its peak employed 5,000 people at the communications systems manufacturing facility, is consolidating into the neighboring building at 1300 W. 120th. Park 12 Hundred includes 200,000 sf of high-bay bulk distribution space, 700,000 sf of light-industrial/flex space and 300,000 sf of office space, along with associated parking and approximately 40 acres of developable land. “This is a prominent Westminster facility in a great location very close to a range of retail amenities and adjacent to one of Denver’s largest park-n-Ride locations,” IBC Holdings Managing Director Brian C. Mott said in a statement. “When complete, it will offer modern-specification facilities to a wide range of industrial and office users. Additionally, we are considering adding a multifamily component and additional industrial buildings with frontage on Huron and Pecos streets at some point in the future.” The repositioning will include demolition of nearly 400,000 sf of the existing industrial building. “If you look at the building from an aerial perspective, it’s almost a perfect square,” said Mott, adding the layout doesn’t set up well for a multitenant building. Demolishing a portion of the space will create a rectangular configuration with spaces that could be leased to a single tenant or easily divided for multiple users, he said. Jason Addlesperger and David Lee of Newmark Knight Frank Frederick Ross handled both sides of the transaction and will market the property with NKFFR broker Scott Garel. “It’s exciting to be able to bring it to market,” said Addlesperger, who noted the property offers features that either don’t exist in the market or are rare, including 15 megawatts of power; more than 200,000 sf of modern, 32-foot-clear distribution space; and 300,000 sf of office space with 5:1,000 parking and exceptionally large floor plates. It creates a situation in which requirements of different types of users can be met; as Addlesperger put it, “The sum of the parts is worth more than the whole.” “This acquisition is representative of our strategy of purchasing well-located properties in strong markets across the U.S. with what we believe is tremendous intrinsic value,” said Sujit Sitole, director at Long Wharf Real Estate Partners. “The opportunity to acquire this property – given its location, the existing buildings and the land – we felt was especially attractive.” IBC Holdings is a commercial real estate firm specializing in development and redevelopment of industrial and office properties. It was responsible for redeveloping the former Nobel/ Sysco Food Services facility at I-25 and Interstate 70 into Denver Commerce Center, which it sold last year for more than $67 per sf.